Politicians Foster A Craft-Beer Renaissance By Not Acting Like Politicians

As craft beer sales and production continue to rise across the country, North Carolina has distinguished itself as a hub for the industry. With homegrown operations across the state churning out delicious and creative brews, such as Mother Earth Brewing Company in the eastern part of the state, and Foothills Brewing in the western half, North Carolina is becoming a microbrew mecca.

North Carolina now has 70 breweries, a 33 percent increase from a year ago. Two of the most well-established names in the craft beer business, Colorado-based New Belgium and California-based Sierra Nevada, are in the process of constructing large facilities in Asheville, NC that will employ over 200 people and serve as their east coast headquarters. This growing industry is now getting an assist from state lawmakers. Thanks to legislation recently passed by the North Carolina General Assembly with bipartisan support, there will now be greater access to heady brews across the Tar Heel State.

House Bill 829, known as The Growler Bill, was signed into law by Gov. Pat McCrory (R) this month. This reform amends state law to allow retailers to sell growlers (64 oz glass jugs) of beer. Currently, only breweries can fill and sell growlers. With the enactment of HB 829, North Carolinians will now be able to purchase growlers of their favorite brews at stores such as Whole Foods, TotalTotal Wine, and other retailers.

The Growler Bill failed to pass last year due to opposition from brewers seeking to maintain a monopoly on their right to fill and sell growlers. Between last year and this year, however, the brewers got on board, recognizing that the Growler Bill would expand access to their products and allow them to reach customers in distant parts of the state who would otherwise not be able to procure their offerings.

The success and popularity of growler stations elsewhere in the country was an impetus for the North Carolina legislation. “With our burgeoning craft brew industry, what this bill would allow is the same thing to happen here in North Carolina,” said Rep. Chuck McGrady (R), a bill sponsor.

The Growler Bill isn’t just a boon to brewers and beer nerds; the expansion of commerce it will generate is also good news for the state economy. “On-site growler sales would likely increase traffic and sales to local bottle shops, some of which already have taps in place for pint sales,” wrote Charlotte Magazine’s Matt McKenzie.

The state’s breweries contributed over 65,000 jobs to the state and more than $7 billion to the state economy last year, according to the Beer Institute. Enactment of the Growler Bill will allow the industry to continue to thrive and help ensure that the state remains a craft beer epicenter in the future.

Noticing the economic benefits North Carolina is realizing from the craft beer boom, South Carolina legislators also changed state law this year to remove regulatory shackles that have prevented microbreweries from flourishing in the Palmetto State like they have north of the border. At the start of the year, South Carolina’s 11 breweries were only allowed to sell 16 ounces of beer per customer and they had to be served in four ounce glasses. However, Gov. Nikki Haley (R) did away with this archaic regulatory regime last month by signing Senate Bill 423, AKA the Pint Bill, which allows South Carolina breweries to now sell 48 ounces of beer right from the tap.

Like the Growler Bill in North Carolina, the South Carolina Pint Bill removes regulatory impediments to industry growth. “It allows us to expand,” Jaime Tenny, owner of Coast Brewery in North Charleston, said about the new law.

North Carolina legislators aren’t stopping with the Growler Bill. In fact, lawmakers in Raleigh are set to pass a historic tax reform package this month that will provide significant tax relief to brewers, thereby increasing their production and job creating capacity. The tax overhaul will also leave residents with more disposable income with which to purchase their favorite brews and pretty soon they’ll be able to do just that at one of the new growler stations that will soon be popping up at neighborhood stores across the state.

There is much discussion in Washington, D.C. and in state capitals around the country about how lawmakers can promote economic growth and job creation. However, the recently-passed Carolina beer bills demonstrate that politicians would do better to first consider how they can get government out of the way of employers so that they can expand their businesses, grow the economy, and create jobs.

Patrick Gleason is director of state affairs for Americans for Tax Reform, a Washington D.C.-based advocacy organization founded by Grover Norquist in 1985 at the request of President Ronald Reagan. Gleason writes about the intersection of federal & state policy and politics for Reuters, Politico, and other outlets.

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